Tech innovators from around the world descended on Las Vegas on Sunday (January 5) to show off and try out the latest gadgets and innovations ahead of CES 2025.

From AI-powered companion robots to immersive VR and the latest in health tech, the CES trade show is one of the largest gatherings of manufacturers, analysts and suppliers in the United States and comes days before the inauguration of President-elect Donald Trump, who has pledged big tariffs on imports from Canada, Mexico, China and other U.S. trading partners. This has sparked concerns about spiraling costs for businesses as well as consumers.

"It will not be positive for innovation. Innovation and the world would be better off if the best people in the world can be allowed to create products and trade with each other," said Gary Shapiro, CEO of the Consumer Technology Association that puts on the trade show.

"It hurts American companies, it hurts the American stock market, hurts the retirement plans... it will have some difficult, even terrorizing moments for the business community and American consumers. I think that ultimately, President Trump will do the right thing," added Shapiro.

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CES 2025, formerly known as the Consumer Electronics Show, runs January 7-10 and is used to debut products ranging from new automotive technology to quirky gadgets, as well as showing new ways to use artificial intelligence. Among the highlights this year is a keynote speech from AI chip giant Nvidia's CEO, Jensen Huang.

While AI will still be the buzzword on the show floor, the issue of tariffs will be top-of-mind in policy sessions, press conferences and on the sidelines.

Companies may be asked about changing suppliers and moving production to the United States to mitigate supply-chain disruptions - moves that take time and are expensive, analysts have said.

Honda, for instance, sends 80% of its Mexican output to the U.S. market. It has warned it would have to think about shifting production if the United States were to impose permanent tariffs on vehicles imported from the country.

Nearly half of new cars sold in the U.S. as well as a significant share of parts on the rest are made elsewhere, according to estimates from Edmunds. European and American carmakers could lose up to 17% of their combined annual core profits if the U.S. imposes import tariffs on Europe, Mexico and Canada, according to an S&P Global report.

In addition to tariffs, Trump has said he plans to begin rescinding policies meant to promote the adoption of EVs.

Between responding to potential tariffs, automakers and their suppliers - including Honda, Toyota, Bosch, and Continental - are expected to provide updates on their race to develop cars with software-driven enhancements, self-driving technology and AI that makes vehicles easier and safer to drive.

Among the speakers will be Delta Air Lines CEO Ed Bastian, Volvo Group CEO Martin Lundstedt, Panasonic CEO Yuki Kusumi, and X Corp CEO Linda Yaccarino. Every industry is likely to face questions about tariffs.

(Production: Sandra Stojanovic, Omar Younis)